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Bike Shop ManagementIndependent Bike Dealers

Best Practices: Increasing Your Average Transaction Value (ATV)

With 2020’s Coronavirus pandemic, many re-opening businesses are focused on how to quickly generate extra cashflow. One tactic to try is focusing on your average transaction value. For some tips to get started and insights on how The Bike Co-Op can help, read on!


A quick refresher on Average Transaction Value

ATV is the average price of items sold during a specific period of time. It’s calculated by dividing total revenue by the number of units sold. 

ATV = Total Revenue / # of Units Sold

Let's start with an example

Your store had sales of $20,000 in the month of April and sold 100 items. To calculate ATV, you’d take the $20,000 and divide by 100. Your ATV would be $200 for the month of February. 

Basically, it’s a measure of how much a customer is willing to spend. Changes to ATV may indicate that the price is too high or too low on a specific item. 

Staying on top of metrics like ATV is one of the best ways to realize steady, incremental improvement

Get to know Co-optics, The Bike Cooperative’s retail analytics tool

Learn about the members-only data tool that gives Bike Shops a streamlined solution to monitor and improve your sales metrics month over month.

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Why price point evaluation is important

Do you offer a diversity of price points? Are there enough higher priced items to drive sales? Do you have the right spread of pricing options? 

It is important to have the right selection of price points to ensure you don’t miss sales opportunities. Look at pricing by category to make sure you cover all price points. If you discontinue products, make sure you bring in similarly priced products to fill the holes whenever possible. Naturally, when supply chains become strained due to Tariffs or global pandemics – this can be challenging, but still worth observing. 


After ensuring your products are at appropriate price points, you should craft a plan for maximizing ATV potential. This includes training employees on new sales techniques, re-merchandising the store to highlight higher ticket items, and more! 

We’re recommending six tactics below to get you started…

Ask the customer the right questions

This is not about deceiving the customer. This is about listening and identifying a need based on customer feedback. Don’t just shove ideas at them. Ask what they’re looking for. Listen to what they say. Follow up. Then proceed to share product ideas. But don’t just recommend a single product; recommend an entire solution. Whether you’re selling bikes or bark mulch – accessories, tools, and service add-ons aren’t upsells. They’re good customer service. 

Train Your Employees to Focus on High Ticket Items First

After determining what the customer is looking for, start providing options. But suggest higher ticket items first. As the customer responds, they may tell you they’re looking for something a little bit less expensive. Then move to lower priced items.

If you start the other way around, you’ll see more price resistance as your suggestions increase in price.

Prepare cheat sheets to help your sales team

Consider creating product or service recommendation cheat sheets for your employees. The cheat sheets could contain suggestions for some of the higher priced items in each product category. This will allow employees to practice focusing on higher price points and may drive up your average ticket price.

Offer your customers a financing option (like Freedom to Ride)

You’ll often see some price resistance to higher ticket items. But with more customers focused on holding onto their cash while simultaneously wanting to enjoy a new bike, consumer financing can be a big win (and an easy addition to your sales messaging).

Need another reason? The average financed transaction with The Bike Cooperative’s Freedom to Ride program is over $1,400 and the average cardholder spends $545 more on average than your typical “big ticket” shopper. 

Place high ticket items at the front of the Store

You want customers to walk in and instantly fall in love with a high ticket item. Make sure you are optimizing potential sales by highlighting your big ticket products. Place them front and center. They’re more likely to draw the customer into the store and may result in higher sales. 

If you want to get detailed, do a price analysis by shelf location in your store. Set a targeted retail value for the products placed in the front. Set a dollar threshold for what can go in the window. Then place products accordingly.

Consider packaged deals / product bundles

One way to increase ATV and drive sales is through packaged deals and product bundling. Bundles offer customers a perceived savings and are often sold at a price lower than the sum of the bundled items. Sales treatment of a bundled product varies, but in some cases it boosts ATV because revenue increases while the number of units sold stays at one.

As you review your pricing strategy and analyze your price points, pay attention to your ATV and get creative! Use new sales techniques and focus on product placement to drive consistent improvement. Feeling stuck? Chat with The Bike Cooperative today to learn how Co-Optics, our unique retail analytics tool, can help streamline the process.

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